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Investment and inclusive growth in the midst of crisis: lessons learned & ways forward

Investment and inclusive growth in the midst of crisis: lessons learned & ways forward

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Investment and inclusive growth in the midst of crisis: lessons learned & ways forward

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Promoting entrepreneurship and SMEs for inclusion

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Jedco

Jordan Enterprise Development Corporation (JEDCO) is a governmental organization dedicated to supporting the development of emerging businesses and small and medium-sized enterprises in Jordan.

Jordan Enterprise Development Corporation (JEDCO) is a governmental organization dedicated to supporting the development of emerging businesses and small and medium-sized enterprises in Jordan. The Corporation is financially and administratively autonomous, with a board of directors that is chaired by the Minister of Industry and Trade and whose members represent an equal number of private sector and public sector stakeholders.3

Jedco

JEDCOs mission is to grow viable projects and SMEs in the Kingdom by improving the business environment; offering financial and technical support to entrepreneurial projects and emerging companies; boosting the competitiveness of Jordanian SMEs locally and internationally; and encouraging the use of innovation and new technologies by local enterprises.

JEDCOs mission is to develop productive enterprises with a focus on the industrial, service and agribusiness sectors in Jordan. The Corporation offers tailored technical and financial support to selected projects, aiming to improve their competitiveness and foster their growth locally and internationally. Assistance can include;Mentorship and consultancy services for emerging businesses and small and medium-sized enterprises. Access to research, statistics and data regarding local and international markets. Technical and financial support to develop and improve enterprises competitiveness, capabilities, administrative, technical and exporting capacities. Facilitating the financing of SME projectsIn addition, JEDCO acts as an advocate for the SME sector in Jordan through;Analyzing and seeking to improve government policies on the SME sector. Promoting an entrepreneurial scene and culture in Jordan.

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Jedco Programs Impact on employment

Jedco Programs Impact (2012-2014)No. of new employment opportunitiesAverage cost. of new employment opportunitiesProgram865 8,383 Industry Support 11193 12,215 2Industry Support 942 11,593 Industry Support 2-ext.591 17,142 Service Support 11166 11,286 Service Support 24756Total

An impact study was done by third party to figure out the impact of Jedcos programs and services the benefited companies and individuals , the study covers the impact on their sales, exports, profit and on the no of new employees. The results here shows the no of new created job opportunities and the cost of each new opportunity.

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SMEs Strategy

Jordan has developed Jordan National Entrepreneurship and Small and Medium Enterprise (SME) Growth Strategy 2015-2018 and its associated action plan 2016-2019.

The main goal of the Jordan National Strategy for Entrepreneurship and SME Growth is to foster job creation and income generation by promoting the entry of new start-ups and improving the performance and growth of existing small, micro, and medium enterprises (SMMEs) to elevate the contribution of the SMME sector to Jordans economy. The primary focus of the Strategy is on fostering a stronger entrepreneurial culture; easing the legal and regulatory burden to foster the entry of new businesses and the expansion of existing SMEs; strengthening the entrepreneurial capacity of Jordanians to start new businesses with higher value-added and job creation potential; improving the survival and growth possibilities of early-stage enterprises through provision of post-creation support; enhancing the capacity of existing small and medium enterprises (SMEs) to improve their productivity, competitiveness, international orientation and job creation and growth trajectories; fostering a higher percentage of rapidly-growing and innovative enterprises; and ensuring all enterprises have access to the financial resources necessary to launch and develop.The Strategy Target Groups are: New entrepreneurs, Early-stage start-ups, Small and medium enterprises, High-growth potential and innovative SMEs.The strategy establishes a set of goals and objectives that, followed by the necessary implementation actions, will lead to the growth and strengthening of the SMME sector so that it can meet its full potential for creating jobs, adding value, innovating, and contributing to Jordans economic growth.

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SMEs Strategy Objectives

Increase the rate of new enterprise formation, including among educated young people and women; Increase the proportion of high-growth and innovative SMMEs; Increase the number of productive SMEs benefiting from upgrading and quality enhancement programmes to improve their productivity, growth and ability to compete in international markets, both domestically and abroad; Facilitate access to financing and top quality, comprehensive business development services in all governorates.

Studies shows that:Women make up less than 5% of self-employed people, which is exceedingly low compared to womens share of the self-employed in other countries.

The prevalence rate of early-stage entrepreneurs in the adult population (percentage of adults in the process of trying to start a business combined with the percentage of adults who own a young business of no more than 42 months old), at 10.2%, is lower than might be theoretically expected for a country at its level of development.ObjectivesIncrease the rate of new enterprise formation, including among educated young people and women; Increase the proportion of high-growth and innovative SMMEs; Increase the number of productive SMEs benefiting from upgrading and quality enhancement programmes to improve their productivity, growth and ability to compete in international markets, both domestically and abroad; Facilitate access to financing and top quality, comprehensive business development services in all governorates.

Target GroupNew entrepreneursDevelop a coordinated entrepreneurship eco-system that can develop greater interest in becoming an entrepreneur by addressing issues of awareness, orientation, training, incubation and financing.Stimulate a pipeline of new entrepreneurs, including young people and women, with the knowledge and capacity to start enterprises with an enhanced likelihood of survival and growth.Create a more dynamic start-up market through regulatory and legal reforms.Early-stage start-upsImprove the survival, sustainability and growth rates of early-stage start-ups by expanding mentoring, coaching and incubation programmes to help build the operational know-how and capacity of early-stage entrepreneurs during their most vulnerable years, including in financial literacy, marketing and strategic planning.Increase the proportion of early-stage start-ups with more than five workers by the end of the first two years of operation.Ensure early-stage start-ups have access to financing to properly capitalise their businesses and support the acquisition of technology and other needed inputs to foster growth, including integration of information technology (IT).Small and medium enterprisesFoster the movement of smaller enterprises up the value chain and their growth into larger employment size categories.Improve the productivity and competitiveness of SMEs by ensuring access to quality business advisory services; training; up-to-date technology; upgrading, modernisation, lean production, and quality improvement programmes; and competency building, including in financial literacy, management skills, marketing, innovation and growth planning.Improve SMEs access to financing to better support their working capital, technology integration and production capacity needs.Improve their access to markets through supply and value chain linkages, public procurement policies and export support programmes.High-growth potential and innovative SMEs Expand the number of high-growth and innovative enterprises through targeted support to develop their innovation capacity and accelerate their growth trajectory. 7

SMEs Strategy Pillars

Pillar 1. More conducive legal and regulatory environment for start-ups and SMMEsPillar 2. Entrepreneurship awareness and culture-buildingPillar 3. Elevated level of entrepreneurial/ management skills and provision of business development supportPillar 4. Improved access to credit and equity financingPillar 5. Increased innovation capacity and technology adoption/ developmentPillar 6. Broadened market access

Strategic PillarsThe six pillars of the strategy aim to address the major barriers to and opportunities for entrepreneurship and SME growth in Jordan. Pillar 1. More conducive legal and regulatory environment for start-ups and SMMEsPillar 2. Entrepreneurship awareness and culture-buildingPillar 3. Elevated level of entrepreneurial/ management skills and provision of business development supportPillar 4. Improved access to credit and equity financingPillar 5. Increased innovation capacity and technology adoption/ developmentPillar 6. Broadened market accessPillar 3. Elevated level of entrepreneurial/ management skills and provision of business development supportObjectives:Enhance the abilities and know-how of potential and nascent entrepreneurs, including young people and women, in order to affect better informed approaches that will lead to higher value-added start-ups with greater probabilities of survival and growth; Improve the survival and growth probabilities of early-stage start-ups during the first two (most vulnerable) years of operation by making post-creation coaching, mentoring and others kinds of intensive support available to the new entrepreneurs; Improve the management ability and capacity of existing SMEs in order to affect a higher level of performance in terms of productivity, turnover, employment, quality, and innovativeness.8

Thank you

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